Consumer card spending in the UK fell by 0.7% year-on-year in September, according to the latest Barclays Consumer Spend report. This marks a decline from 0.5% growth recorded in August and is below the most recent CPIH inflation rate of 4.1%. Essential spending decreased by 2.6%, while discretionary spending saw limited growth of just 0.2%.
Despite these declines, some categories showed resilience as consumers prioritised affordable “treat” purchases amid broader cutbacks. Furniture spending grew for the tenth consecutive month, rising by 7.5%. Pharmacy, health and beauty increased by 9%, and clothing stores saw their eighth straight month of growth at 2.1%. Twenty percent of shoppers reported higher spending on clothes, shoes, and accessories in September.
Confidence among UK consumers about living within their means reached its highest level in over four years at 78%. Confidence in household finances also climbed to a seven-month high of 74%. Almost half (44%) of UK adults said they are making changes to their personal finances ahead of November’s Autumn Budget, with a third (35%) building up savings.
Essential spending has now declined for five consecutive months, with two-thirds (64%) trying to reduce grocery expenses. Nearly half (46%) plan to cut non-essential costs further.
Retailers are preparing for the upcoming holiday season as one in four (23%) have already started festive shopping to spread out costs, and 27% put aside money in September for seasonal sales.
The trend known as “kidulting,” where adults purchase toys or games for themselves or other adults, was highlighted; one in ten made such purchases in the past year.
Public transport spending experienced its largest fall since March 2021, down by 2.6%, attributed mainly to widespread strikes. Over a third (36%) of Londoners said strike action reduced their monthly outgoings—primarily on office food or lunches (£29 less), eating out (£29 less), and non-food retail (£26 less). Overall face-to-face sales across the UK dropped by 1.6%, marking the biggest decline since June 2024.
Travel-related spending showed marginal annual growth at 0.8%, with travel agents seeing a rise but hotels (-2.2%) and airlines (-4.3%) both declining.
Spending on digital content and subscriptions grew by 3.9%, supported by popular series such as The Summer I Turned Pretty and House of Guinness, while takeaways dipped slightly by -0.6%. More than half planning to reduce discretionary spending intend to order fewer meals “on-demand,” while a quarter prefer buying ingredients for homemade treats—contributing to modest growth at food and drink specialist stores.
Karen Johnson, Head of Retail at Barclays, commented: “It is encouraging to see that UK consumers feel confident in their ability to manage their budgets, amid ongoing cost of living concerns. We’re continuing to see cautious spending, and shoppers are consistently seeking out areas they can cut back on. However, multiple retail categories have proven to be resilient in recent months, with furniture, clothing, and beauty all remaining in growth since February of this year.”
Julien Lafargue, Chief Market Strategist at Barclays Private Bank and Wealth Management added: “Although spending habits keep evolving, the UK consumer remains resilient in the face of an uncertain macroeconomic backdrop. With wage growth continuing to outpace inflation, there is room for spending to accelerate again when visibility improves.”
Barclays processes nearly forty percent of credit and debit card transactions across its issuing and acquiring businesses in the UK—providing detailed insights into consumer behaviour based on actual transaction data from Barclays debit cards and Barclaycard credit cards during late August through late September each year.
The findings are supported by research conducted between September 26–30 with responses from a representative sample of two thousand UK consumers covering age, gender, region, and income group.